The cryptocurrency is holding above the key psychological barrier of $40,000, though market analysts have warned that a severe sell-off could take place take place if it falls below that level.
Funds are already being moved onto exchanges by some investors, with one anonymous wallet transferring more than $40 million in BTC onto Coinbase.
Other leading cryptocurrencies have experienced a similar downturn in fortunes to bitcoin, with Ethereum (ETH), Binance Coin (BNB) and Solana (SOL) all falling by around 20 per cent over the last seven days.
The only top 20 cryptocurrency by market cap to see any positive movement since the start of 2022 has been Chainlink (LINK), which has risen by more than 15 per cent in price.
You can follow all the latest cryptocurrency market news, analysis and expert price predictions in the live blog below.
Bitcoin price bounces as experts predict ‘relief rally’
The price of bitcoin has managed to hold above $41,000, after its brief venture into the sub $40,000 territory earlier today. Where it goes from here will depend on a number of factors, but its short-term direction could ultimately determine the overall market sentiment and therefore future trajectory over the coming weeks.
We’ve heard from a couple of crypto experts, who are tentatively predicting that bitcoin could recover some of its losses, at least in the short term.
Here’s what Marcus Sotiriou, analyst at the UK based digital asset broker GlobalBlock, and Mike Novogratz, CEO of Galaxy Digital, had to say:
Anthony Cuthbertson10 January 2022 20:06
‘When in doubt, zoom out’
Bitcoin has managed to return above $41,000, potentially signalling an end to the seven-day losing streak it has been on if it is able to hang on.
Crypto industry insiders and commentators have been offering their perspectives on the latest market downturn on social media.
This one from Dan Held, who works at the crypto exchange Kraken, is often repeated during times of price turmoil: “When in doubt, zoom out.”
Anthony Cuthbertson10 January 2022 16:27
Bitcoin price flash crash
The recovery from the flash crash suggests support at that level, just as there was in September 2021 when it rebounded from around $39,550.
Anthony Cuthbertson10 January 2022 15:26
Bitcoin price sees longest losing streak since 2018
Bitcoin has fallen in price for seven consecutive days, marking its longest losing streak since August 2018.
It’s now down nearly 40 per cent since its November peak, with analysts warning that a further sell-off could be triggered if it falls below the crucial $40,000 level. The last time it was this low was in September 2021, when it bottomed out at $40,000 and bounce back to hit new record highs within two months.
You can read the full story here.
Anthony Cuthbertson10 January 2022 14:01
Hello and welcome…
to The Independent’s live coverage of the crypto market. We’ll be bringing you all the latest news and market analysis throughout the day, as well as forecasts from cryptocurrency analysts and experts.
Anthony Cuthbertson10 January 2022 13:49